Go to Kentucky.gov home page
Kentucky Department of Revenue Kentucky Department of Revenue Kentucky Department of Revenue Kentucky Department of Revenue

Other Collection Programs

State Claims

This program is administered pursuant to KRS 44.030 to satisfy the outstanding tax liability of a taxpayer who is employed or contracts with an agency of the Commonwealth of Kentucky. Administration of this program operates very much like that of a wage levy with the exception that no exemptions may be claimed. The entire amount of payment to the taxpayer is diverted to pay the outstanding tax liability.

Taxpayers who qualify for State Claim action include the following:

  • Employees of the Commonwealth of Kentucky

  • Taxpayers due a Kentucky highway use tax refund from the Transportation Cabinet

  • Taxpayers due a vehicle registration refund from the Transportation Cabinet

  • Taxpayers due a payment on a business contract with the Commonwealth of Kentucky

  • Some medical professionals (doctors, pharmacists, medical centers, etc.), if receiving Medicare/Medicaid claims payments through the Health and Family Services Cabinet.

  • Kentucky National Guard employees

  • University and community college employees

  • Fayette County, Kenton County, Campbell County, and Jefferson County sheriffs and county attorneys.

Inquire about a State Claim

License or Permit Revocation

Mine License Denial or Revocation

Pursuant to KRS 131.181 , the Department of Revenue has the authority to request the revocation of a taxpayer's mine license, after determining that the taxpayer holding that mine license owes a tax liability arising directly or indirectly from the mining, transportation, and/or processing of coal.

When a taxpayer's mine license is revoked, a representative from the Office of Mine Safety and Licensing personally visits the mine site(s) and "tags" the mine as closed until such time as the taxpayer makes satisfactory payment arrangements with the Department of Revenue.

The Department of Revenue may also request that the Office of Mine Safety and Licensing deny a taxpayer's initial request for a mine license, or its renewal, when the taxpayer owes a tax liability. When a mine license application is denied, the taxpayer is not issued the license and is unable to operate until satisfactory payment arrangements are made with the Department of Revenue.

Inquire about Mine License Revocation

ABC "Liquor" License Denial or Revocation

This program is administered by the Department of Revenue pursuant to KRS 243.500(5) and is employed to resolve outstanding tax liabilities owed by a taxpayer holding license(s) to sell alcoholic beverages. When the taxpayer has an unresolved tax liability, the Office of Alcoholic Beverage Control may deny requests for license application or renewal until the tax liability is satisfied.

Before a taxpayer is able to transfer or sell a "liquor" license, the Department of Revenue must issue a tax clearance must be submitted to the Office of Alcoholic Beverage Control indicating that the taxpayer has no outstanding tax liability. The Office of Alcoholic Beverage Control may deny a taxpayer's request to sell or transfer their license until the tax liability is satisfied.

Inquire about ABC Permit Revocation

Offsets

The Department of Revenue may apply various types of refunds to a taxpayer's outstanding tax liability. The following is a listing of some of the more common offsets:

  • Vendor Offset - Payments being issued to vendors for services rendered to the Commonwealth are offset to the vendor's outstanding tax liability.

  • Lottery Offset - Lottery winnings are offset to a taxpayer's outstanding tax liability.

  • Individual Income Tax Offset - State Individual Income Tax refunds are offset to a taxpayer's outstanding tax liability

  • Treasury Offset Program (TOPS)-Federal individual and corporation income tax refunds are offset to a taxpayer's outstanding tax liability.

Inquire about an Offset

Child Support Collections

This program is administered pursuant to KRS 131.130 (11) and is employed to help resolve unpaid child support obligations. When an individual has an unpaid child support obligation the Health and Family Services Cabinet, Division of Child Support may turn the debt over to the Department of Revenue for collection, who will then collect the debt using the same administrative remedies it uses to collect delinquent taxes.

Inquire about Child Support Collections

 

Last Updated 1/25/2005
Contact Us | Taxpayer Bill of Rights
Privacy | Security | Disclaimer | Accessibility Statement